Director Data 4th Quarter
By Directors and Boards

CEO Trends

Record number of CEOs reached retirement age

• In 2017, nearly 17% of sitting CEOs reached retirement age (64 or older). That’s the highest rate since we began tracking successions.

Outsider CEOs gained steam

• Outsiders filled around 44% of vacancies. In both 2015 and 2016, they filled about 14%.

The best CEOs left less often

• The CEO succession rate at better-performing companies declined to about 7%, the lowest since 2002. This likely reflects pressure that new regulations and shareholders are putting on companies.

(Source: CEO Succession Practices: 2018 Edition. The Conference Board and Heidrick & Struggles)

Are companies dropping the reputation ball?

Roughly half of CEOs and board members acknowledge that their organizations lack the ability to identify reputation impacting events, analyze risks, and forecast impacts on brand and reputation. Separately, 59% of leaders lack a plan to develop or acquire tools to address reputation risks.

(Source: “Illuminating a path forward on strategic risk,” Deloitte)

 

 

 

Independent board leadership

In a review of S&P 1500 companies, independent board chairs have been experiencing the fastest increase since 2000. The study also found that women are less likely to be a board leader.

(Source: “Today’s independent board leadership landscape,” EY Center for Board Matters)

Cybersecurity & Risk

In the “Cybersecurity Disclosure Benchmarking” report, EY’s Center for Board Matters took a look at the risk and strategy behind voluntary cybersecurity statements from Fortune 100 companies. Of those companies:


Issue: 
2018 Fourth Quarter

Other related articles

  • Compensation Committees & ESG
    Published July 16, 2019
    By Don Delves and Ryan Resch
    Human capital management and oversight should be a bigger part of the agenda.By Don Delves and Ryan ReschEnvironmental, social and governance (ESG) issues are increasingly important to boards and thei ...
  • Director Data Annual Report 2019
    Published June 28, 2019
    By Directors and Boards
    Trends for the 2019 Proxy SeasonShareholder voting during 1,024 meetings held during the “mini-season” between July 1 and Dec. 31, 2018 provides a window into what’s in store for the 2019 proxy ...
  • Elizabeth Warren’s Accountable Capitalism Act
    Published May 13, 2019
    By Eve Tahmincioglu
    Delaware’s supreme court chief justice sees merit in calling for employee representation in the boardroom and ESG disclosure for all large companies — public and private. Last year, U.S. Sen. ...
  • TOP OF MIND: What directors are thinking (James Lam, director, E*Trade & RiskLens)
    Published April 25, 2019
    Risk oversight has always been one of the most critical responsibilities for corporate directors. Today, organizations face global conflicts, economic uncertainties and disruptive technologies. In an ...